TRANSPORTATION

ECONOMICS
Lecture 1: Introduction

Course Instructor: Pulkeria Shauri 25th March 2024

Content

❑ Generals
❑ Objective
❑ Course content
❑ Learning outcome
❑ Recommended Textbooks
❑ Remark
Generals

Duration (14.00hrs – 15.55hrs)

➢ 1hr 55min lecture for each session (3hrs 50min per

week)

Room Allocation + Time

Monday Class R217 14.15 - 15.55hrs
Wednesday Class A108 14.00 - 15.55hrs
 Generals
Course Registration:
➢ Within 2weeks i.e 25th March 2024 – 7th April 2024 at 00.00hrs via
link:
https://docs.google.com/spreadsheets/d/1FUcPhjh09hzd3hc8p7jUMMyg7pKnHvwf0L
sk3V5-stM/edit?usp=sharing

Assessment Mode

➢ Coursework = 40% (quiz/Assignment + tests)

➢ University Examination = 60%
 Objectives

1. To introduce civil engineering students to the basic principles of

microeconomics.
2. To impart students with knowledge and skills necessary for
conducting appraisals of Transport investment projects.
3. To introduce students to concepts of pricing of transport services.
 Basics of Transportation Economics

➢ Overview of economics,
➢ Distinction between micro-and macroeconomics, transport
economics,
➢ Demand, supply and price;
➢ Taxes and subsidies;
➢ Elasticity;
➢ Estimation of Demand and supply relationships;
➢ Consumers’ surplus and economic rent
 Appraisal of Transport Investment Projects

➢ Agency costs, road user costs, non-road user costs, accident costs & the
value of travel time,
➢ Sources of benefits,
➢ Approaches to assessing benefits for interurban roads, urban roads and
low volume rural roads.
➢ Discounted Cash Flow (DCF) analysis;
❖ Decision rules in economic analysis (NPV, IRR, and FYRR), risk and
uncertainty;
➢ Models for investigating investment choices (HDM, RED, etc.).
 Pricing of Transport Services

➢ Private undertakings (profit maximization);

➢ Public undertakings (maximization of social net benefit);
➢ Marginal cost pricing in Transport;
➢ Subsidies for Transport;
➢ A road congestion tax.
 Learning outcomes

1. An ability to conduct project appraisals and analysis of road

management and investment choices.
2. An understanding and appreciation of the fundamentals of
microeconomics
3. Pricing of transport services.
 Recommended Textbook

1. Bent Thagesen (Editor): Highway and Traffic Engineering in

Developing Countries E& FN SPON, 1996.
2. TRL (1988): Overseas Road Note 5: A guide for Road Project
Appraisal, Overseas Unit, TRL, Crowthorne, Berkshire, UK.
Remarks
THANK YOU

For more details please Contact:

pulkeriashaurip@gmail.com